Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Compliance Exclusivityrouting rules effective April 1
WASHINGTON (3/9/12)--The Credit Union National Association's (CUNA) CompBlog in a recent post reminded credit unions that the Federal Reserve's Regulation II's debit card network exclusivity and routing requirements are scheduled to come into effect on April 1.

Regulation II implements the provisions of section 920 of the Electronic Funds Transfer Act that govern debit card interchange fees and network routing and exclusivity limitations. The regulation requires a debit card issuer or payment card network to ensure that debit cards can be processed on at least two unaffiliated networks--one signature and one PIN network--if the card has both signature and PIN capabilities.

Alternatively, an issuer could provide a debit card that can be processed on two or more unaffiliated signature networks, but not on any PIN networks, or that can be processed on two or more unaffiliated PIN networks, but not on any signature networks, CompBlog said.

Regulation II also prohibits issuers and payment card networks from limiting a merchant's ability to choose the network on which a transaction is routed, with respect to those networks on which the debit card is enabled to be used. 

The requirements apply to all debit card issuers, regardless of asset size.

The section was added by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

CompBlog noted that many credit unions have already been steadily working with their vendors to comply with Regulation II.

For more on Regulation II, see CUNA's CompBlog by clicking on the resource link.


RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
12 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
12 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
13 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
14 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
14 hours ago